Wednesday's Personal Finance stories

The most important maxim in the consumer world is "buyer beware." But these days, even if you are not a buyer of anything at all you need to be en garde in any number of situations. A trio of recent congressional hearings spotlights three of the timeliest dangers.

The most pernicious is the proliferation of spyware that tracks your computer movements, either in an effort to steal your identity outright by hijacking key financial passwords and favorite Web sites or in an attempt to monitor your online behavior as a security threat or marketing target.

Borrowing isn't really buying, but as families that have recently taken out student loans have learned, there is much to beware of in the financial-aid offices of colleges around the country who have gotten into bed with the lenders. And then if you do make a mistake or two in your financial life, there are the pitfalls of credit counseling and bankruptcy proceedings that could make your situation worse and not better.

In our lead stories, we look at three consumer issues that have come before Congress this week and explain measures under consideration to enhance consumer protections in those areas. Read Washington correspondent Ruth Mantell's coverage, plus find out from Sophisticated Investor Thomas Kostigen why affluent investors are shifting portfolio and estate-planning strategies out of a belief the U.S. is losing its competitive edge, and check out Marshall Loeb's tip for deciding whether you should send your teen into the work force this summer, on Wednesday's Personal Finance pages.

We could add "browser beware," "borrower beware" and "bankrupt beware" to the list of personal finance adages. If we took those to heart, we would have to be so wary of Congress.

Steve Kerch, assistant managing editor/personal finance

CONSUMER WATCH

Consumers may gain federal protection from spyware

Consumers may gain federal protection from computer criminals stealing their personal information as Congress seeks to safeguard the growing Internet commerce market. See full story.

Lawmaker calls for FTC probe of student lending

A U.S. House lawmaker requested Wednesday that the Federal Trade Commission investigate the $85 billion student loan industry, citing lenders' unfair and deceptive marketing practices. See full story.

Experts clash over success of bankruptcy reform

Legislators heard two starkly different assessments of the nation's bankruptcy laws Tuesday, with critics saying consumers have been hit with higher costs and supporters pointing to a decline in filings since a major bankruptcy overhaul was enacted in 2005. See full story.

INVESTING

Affluent investors fret over U.S. losing its edge

More than half of Americans with more than $5 million to invest believe the U.S. stock market is becoming riskier, and many are shifting to international equities. See Sophisticated Investor.

Two-star Mexico ETF boasts five-star performance

Barclays' iShares MSCI Mexico placed first among rival Latin America-focused mutual-funds and exchange-traded funds in the 12 months as of April 30, up 37.9%. You'd think that would impress the fund raters at investment researcher Morningstar Inc. It didn't; they give the ETF a two-star rating. See Bill Donoghue.

No satisfaction: why what you have is never enough

We may have life and liberty. But the pursuit of happiness isn't going so well. As a country, we are richer than ever. Yet surveys show that Americans are no happier than they were 30 years ago. The key problem: We aren't very good at figuring out what will make us happy. See Getting Going.

Sell when valuation is right, editor says

Paul Larson, editor of the Morningstar StockInvestor newsletter, says that "even the most fantastic business in the world can be a sell if it is selling at too high a valuation." See Audio Report.

REAL ESTATE

How auto sales and housing are related

California and Florida account for 20 percent of the nation's auto sales. Those states have also been hit hard by the housing slump. Automakers and dealers think the weak housing and weak auto sales are connected, and AutoNation's Marc Cannon explains why. See Audio Report.

Mortgage applications crawl higher

Applications for new mortgages increased 0.6% last week on higher demand for loans to buy a home, the Mortgage Bankers Association reported Wednesday. See Economic Report.

Flipping down, foreclosures up

Here's a look at what's new in real-estate markets across the U.S. from around the Web. See Real Estate Blog.

KIDS & MONEY

Teens: To work or not to work this summer?

Summer vacation is right around the corner and soon millions of teenagers around the country will have nothing but time on their hands. Many parents are divided on the issue of whether children should take on jobs during their vacation -- on the one hand, it will teach them responsibility. On the other hand, they will spend a lifetime working soon enough. See Marshall Loeb's Daily Money Tip.

How much fan appreciation do parents need to show?

When parents talk about juggling kids and careers, one topic inevitably comes up: making it to sports events. A reader recently remarked that her daughter was a star athlete in high school, but no matter how hard the mother tried, she "couldn't make [it to] all her events." When did it become de rigueur for parents to attend every game? See The Best of the Juggle.

TAXES

Estate-tax scams try to elude experts

Lorraine F. New pretty much saw everything in the 20 years she spent auditing estate-tax returns at the Internal Revenue Service: shady deals, dubious marriages, checks written as a parent was dying. Some of the shenanigans were reminiscent of "Dynasty," the 1980s soap opera about a wealthy family. Despite the skullduggery, most of the returns New saw were legitimate. Family members were generally "likeable," she says. "Sometimes they fought and one sibling would write a letter about the other not being fair. But most people try to do the right thing." See full story.

Economists see advantage is higher tax on tall people

With a Democratic Congress and the White House at odds over raising taxes and by how much, a former top Bush administration economist is offering one option: increase taxes on the tall. See story from WSJ.com.

HEALTH CARE

Study finds gene that links diet to life span

Researchers say they have found a key gene that helps to regulate the process by which extremely low-calorie diets can extend life spans. The finding is an early step in the quest to understand the genetic mechanisms that lead to aging. Scientists hope that understanding these processes will yield new drugs that delay the onset of age-related diseases, such as Alzheimer's and cancer. See full story.

Heart scanners gain popularity

Each year 6 million patients visit U.S. emergency rooms complaining of chest pain. They can spend up to 12 hours at a hospital going through a battery of tests before finding out if they are at risk of a heart attack. Now some doctors say a higher resolution scanner that is growing in popularity can help rule out coronary-artery disease as the culprit in 10 to 15 minutes, possibly making it a first-line screening tool. See full story.

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